Does Market Performance (Tobin’s Q) Have A Negative Effect On Credit Ratings? Evidence From South Korea

Hyoung-Joo Lim () and Dafydd Mali ()
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Hyoung-Joo Lim: Kyonggi University
Dafydd Mali: University of Nottingham

Asia-Pacific Financial Markets, 2024, vol. 31, issue 1, No 3, 53-80

Abstract: Abstract Tobin’s Q is an established measure of firm performance, based on investor confidence. However, the association between Tobin’s Q and credit ratings is not well-established in the literature. Using a sample of Korean listed firms over the 2001–2016 sample period, Probit regression analysis shows that overall, Tobin’s Q is positively associated with credit ratings. However, for firms with a > 1 (1

Keywords: Credit ratings; Tobin’s Q; Accounting education; Mispricing/overvaluation (search for similar items in EconPapers)
JEL-codes: M15 M21 M40 M41 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10690-023-09406-x

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